What is an Introductory Clause and Why is it Important in Contracts?

Definition & Meaning

An introductory clause is the opening section of a contract. It typically starts with phrases like "œThis Agreement is made on [date] between [names of the parties]." This clause sets the stage for the agreement by identifying the parties involved and the date the contract is established. Introductory clauses are also referred to as commencement clauses or exordium clauses.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A partnership agreement might begin with, "œThis Agreement is made on January 1, 2023, between John Doe and Jane Smith."

Example 2: A lease agreement may start with, "œThis Agreement is made on March 15, 2023, between ABC Realty and Tenant Name."

State-by-state differences

Examples of state differences (not exhaustive):

State Notes
California Introductory clauses must include specific disclosures for certain types of contracts.
New York Contracts may require additional language to clarify the parties' obligations.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
Introductory Clause The opening section of a contract identifying the parties and date. Focuses on the initial setup of the agreement.
Recitals Statements that provide background information about the agreement. Recitals follow the introductory clause and give context rather than identify parties.

What to do if this term applies to you

If you're drafting a contract, ensure you include a clear introductory clause that identifies all parties and the date. You can use templates from US Legal Forms to create a compliant agreement. If your situation is complex or involves significant legal implications, consider seeking professional legal advice.

Quick facts

Attribute Details
Typical Use Contracts
Common Components Parties' names, date
Importance Establishes legal intent

Key takeaways

Frequently asked questions

It identifies the parties involved in the agreement and the date it was made.